US Senate Agrees on Foreclosure Prevention Bill
With this new bill bankruptcy judges will be given the power to alter borrowers mortages, provide for councling and also a $7000.00 Credit for buyers who buy foreclosed properties. See entire article at http://www.bloomberg.com/apps/news?pid=20601087&sid=ahxzNeEDeWoU&refer=home
Tags: Buying, Foreclosures, San Digo Real EstateRelated posts
Time to Move Up? Now May Be the Perfect Time.
With all the negative talk in the media, why should we sell our house? The value of our home has gone way done. We made all these improvements and why should we sell for so much less? These are all very true statements. No body wants to give their home away. Now lets look at the other side. Your family has out grown your home. We need another bedroom. A home with a pool would be nice. This commute is killing me. These are all good reasons to make that move. Then go back to loosing money on your home. Here are some things to think about.
1. The thoughts going thru the mind of the seller of the home you would like to buy, are the same as yours.
2. You will be buying like for like. Say your homes value went down 20 percent, so did the value of the home you would like to buy. We will look at this from a dollar and cents point of view
3. Let’s look at your home. Say you bought your home in 2003 for $375,000 and you put 20% down ($75,000) and did not take out any other loans. Now even after the home values have come down you sell your home for $475,000, take out all the fees to sell you home and pay off your loan, you will have approximately $145,000 in your pocket. Subtract your initial down payment. That is a profit of $70,000. That is a return of over 15 % a year. Not bad.
4. Lets look at the home you would like to buy and the associated costs. The home you would fit your needs, you can now buy for say $675,000. The difference being $200,000. Now let’s say you wait till the value of the homes goes back up by 20%. Your home now sells for $570,000. That’s $95,000 more. Sounds nice. What do think happens to the home you want to buy? It will also increase by 20%. The new price is $810,000, $135,000 more than before. Another way to look at it the home will cost you an additional $40,000. Besides costing you an additional $40,000, there will be more property taxes to pay. If the home value goes up by $135,000, that will work out to 1% percnt of the sales price or $1350.00 dollars every year there after.
The bottom line to all of this is. If moving up is the right thing to do for you and your family. Now may just be the perfect time.
Tags: Buying, San Digo Real Estate, Selling. conforming home loans, Selling. HOME SALES DECREASERelated posts
Mortgage Forgiveness Debt Relief Act of 2007
President Bush signed H.R. 3648, The Mortgage Forgiveness Act of 2007, into law, sparing homeowners the tax burden associated with canceled mortgage debt. Prior to this action, forgiven mortgage debt due to foreclosure, short sale, or deed in lieu of foreclosure, was considered taxable income. The new law, however, temporarily waives these taxes for debts forgiven (as high as 35%) from the beginning of 2007 to the end of 2009. The bill also extends the tax deduction for mortgage insurance premiums through 2014.
http://www.govtrack.us/congress/bill.xpd?bill=h110-3648&tab=summary
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Good News For Home Buyers
Good news for home Buyers. The Fed is increasing the the limit conforming limit from $417,00 to $729,750 in some areas. The link below breaks down the dollar amount by state and Metropolitan area.
”The Office of Federal Housing Enterprise Oversight (OFHEO) today announced it has temporarily increased limits on conforming loans offered by government-sponsored enterprises, Fannie Mae and Freddie Mac, from $417,000 to as high as $729,750 in fourteen counties in California for loans originated between July 1, 2007 and Dec. 31, 2008. Fannie and Freddie are reported to be working out new underwriting standards and expect to begin offering the new loans soon. ”
HYPERLINK “http://takeaction.realtoractioncenter.com/ct/N7LihOp1mSxR/“Fannie Mae and Freddie Mac Proposed Loan Limit Changes
Tags: Buying, San Digo Real Estate, Selling. conforming home loansRelated posts
Hello world!
Hello all and welcome to my first blog. As you know this is an opportunity to read and express your opionions or just ask questions. We are also looking for your input for other articles. What is important to you. Let us know.
We all know tht the Real Estate market is in a downward spiral. Forcloses and short sales are at an all time high. There were over 1300 notice of defaults filed last month. The followong is from the California Association of Realtors:
We all know that from history that the market always recovers, and when it does, it goes higher than before. Now for the good news. Thinking of an investmet property? How about that larger home (rent your existing home)? Maybe a second home? Interest rates are still low. Something to consider.
Tags: Buying, San Digo Real Estate, Selling. HOME SALES DECREASE